Getting the best exchange rate can be achieved by understanding what is driving exchange rates, and with the service of a specialist currency broker. Below are movements for the past 30 days affecting USD rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
In my personal opinion, I feel the 1.30 mark is a matter of when and not if. With Trumps continued outrageous comments and behaviour causing USD weakness I feel the Pound could break the 1.30 mark in the upcoming weeks. At the time of writing this report GBP/USD rates are sat at 1.2953 which are extremely close to a six-month high within the market for this currency pairing. With continued perceived strength for sterling in terms of the build-up to today's election and Trumps continued outlandish comments this is a perfect cocktail to see rates break 1.30 in the imminent future. If we do see a positive outcome tonight for the conservatives in the exit polls around 10pm I do expect to see sterling break the 1.30 mark and maybe even through 1.31 which would be a 7 month high trading level.
Fairly quiet this week apart from the baker Hughes oil rig count, next week Wednesday is very busy for data. Inflation, retail sales, and most importantly the interest rate decision where they are expected to raise rates. With continued pressure on Janet Yellon to increase interest this month I would expect to see a rate rise next week. In 2017 we had been expecting to see 4 interest rate hikes and so far we have only seen one in March of this year. With us now being half way through the calendar year I am highly expecting a rate rise next week. Generally, when a country increases their interest rates we see their currency strengthen off of the back of it, this could very much be the jab in the arm that the green back certainly needs right now.
James Comey will face the senate today in what is anticipated to be a very dramatic chain of events. Comey will face the senate today at 3pm, the question many are asking is does President Trumps conduct amount to obstruction of justice? If this is the case Trump could find himself in very hot water and may even have legal proceedings taken against him. The outcome of Comey's testimony could have the potential to cause a lot of uncertainly ahead for Trump and therefore be prepared to see potential USD weakness off of the back of this news later today.
The week ahead is fairly quiet for the Dollar, however there are a few points of note. Monday we have the housing market index, Thursday Jobless claims data (essentially unemployment figures) and on Friday a member of the Federal Reserve (James Bullard) speaks so any mention on interest rate change will be key for US Dollar exchange rates.
For more information on how future data releases could affect your US Dollar requirement, call our trading floor on 01494 725 353 or email me here.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service